August 18, 2021/Cordros Report
EQUITIES
The domestic bourse traded marginally lower today as investors’ selling activities in Tier 1 stocks – FBNH (-0.7%), ACCESS (-1.1%) and GTCO (-0.9%) triggered a 1bp decline in the All-Share Index to 39,505.40 points. Consequently, Month-to-Date and Year-to-Date return printed +2.6% and -1.8%, respectively.
The total volume of trades increased by 19.2% to 132.08 million units, valued at NGN2.67 billion, and exchanged in 3,307 deals. TRANSCORP was the most traded stock by volume at 14.14 million units, while NESTLE was the most traded stock by value at NGN1.18 billion.
Analysing by sectors, the Insurance (-0.9%) index declined while the Consumer Goods (+0.1%) and Banking (+0.1%) indices recorded gains. Elsewhere, the Industrial Goods and Oil & Gas indices closed flat.
As measured by market breadth, market sentiment was positive (1.1x), as 18 tickers gained, relative to 16 losers. PHARMDEKO (+10.0%) and BOCGAS (+9.8%) recorded the most significant gains of the day, while SCOA (-9.7%) and PRESTIGE (-8.3%) topped the losers’ list
CURRENCY
The naira depreciated by 0.1% and 0.4% to NGN411.75/USD and NGN517.00/USD at the I&E window and the parallel market, respectively.
MONEY MARKET & FIXED INCOME
The overnight lending rate expanded by 8bps to 17.8% in the absence of significant inflows into the system.
The NTB secondary market closed flat, as the average yield was unchanged at 4.6%. Elsewhere, the average yield at the OMO segment expanded slightly by 1bp to 7.6%.
Trading in the Treasury bond secondary market was mixed, as the average yield stayed flat at 11.5%. Across the benchmark curve, average yield pared at the mid (-1bp) segment following demand for the JUL-2030 (-2bps) bond but expanded at the long (+1bp) end due to sell-off of the APR-2037 (+12bps) bond; the short end closed flat.
